I'm going to begin by reviewing our financial results for the first quarter of 2012, and then I will provide guidance for the second quarter. Unless otherwise noted, our discussion will be on a non-GAAP basis for all costs, gross margins, operating and net income, as well as EPS when comparing to the same period in the prior year. The primary difference between GAAP and non-GAAP financial information is noncash stock-based compensation. Please refer to the reconciliation of our financial information on a GAAP basis to that on a non-GAAP basis included in the press release published on our website.

For the quarter, recurring revenues grew by 21.9% to $60.9 million. Total revenues grew by 21.4% to $78.3 million. Operating income increased by 32% to $6.4 million and operating margin expanded to 8.2%. Net income grew to $3.7 million compared with $2.8 million last year. The related net earnings per diluted share was $0.13 compared to $0.10 per diluted share last year.

Before I go into some of the details, I'd like to summarize the quarter's results. As many of you know, there's a strong correlation between the growth of our recurring revenues and our services revenues, and both are tied to go-live dates of our clients. It's the nature of our business, at times, that some live dates push to the next quarter and in other times, we pull some new lives into the quarter due to accelerated activations. In the first quarter this year, our recurring revenues of $60.9 million and services revenues of $17 million exceeded our projections, mostly due to more pulls into the quarter than we expected. At the same time, our operating expenses for Q1 were favorable, resulting in an operating margin of 8.2% that was also higher than our expectations.

As I'll discuss at the end of my comments, we're going to maintain guidance for 2012. The primary reasons are: First, there could be some pushes later in the year; and second, some of the operating expense savings we experienced are timing-related, and we expect them to be incurred later in the year.